One of the issues facing credit card fraud detection systems is that a significant percentage of transactions labeled as fraudulent are in fact legitimate. These “false alarms” delay the detection of fraudulent transactions. Analysis of 11 months of credit card transaction data from a major Canadian bank was conducted to determine savings improvements that can be achieved by identifying truly fraudulent transactions. A meta-classifier model was used in this research. This model consists of 3 base classifiers constructed using the k-nearest neighbour, decision tree, and naïve Bayesian algorithms. The naïve Bayesian algorithm was also used as the meta-level algorithm to combine the base classifier predictions to produce the final classifier. Results from this research show that when a meta-classifier was deployed in series with the Bank’s existing fraud detection algorithm a 24% to 34% performance improvement was achieved resulting in $1.8 to $2.6 million cost savings per year.

[pt] O mercado de cartão de crédito no Brasil cresce ano após ano e as formas de utilização dos cartões também estão se modificando com o passar do tempo. Na atualidade, o cartão de crédito se tornou um meio de pagamento capaz de multiplicar a capacidade financeira de seu usuário, ou seja, se tornou um instrumento de alavancagem financeira. Dentro deste contexto, os estudantes universitários são um nicho extremamente atraente para a indústria dos cartões de crédito. Este estudo piloto objetivou elaborar um questionário para avaliar as variáveis determinantes do endividamento de estudantes universitários no cartão de crédito, adaptando a literatura estrangeira para a realidade do mercado de cartão de crédito brasileiro. O questionário elaborado foi aplicado em seis diferentes universidades no estado do Rio de Janeiro, no Brasil, e resultou em uma amostra de trinta e dois estudantes. Os dados coletados foram tabulados e tratados estatisticamente através do método de regressão linear múltipla. Os resultados apontaram que apenas uma das variáveis independentes elencadas teve significado estatístico e pode ser considerada como preditora do grau de alavancagem financeira dos estudantes. Esta variável foi o meio de pagamento de preferência. Em resumo, os estudantes que declararam preferir o cartão de crédito como meio de pagamento de preferência apresentaram maiores níveis de endividamento. / [en] The credit card market in Brazil is growing year after year and the way to use the cards is also changing over the time. Currently, the credit card has become a payment method which can multiply the financial capacity of its holder, in other words, it became an instrument of financial leverage. In this context, college students are a very attractive niche for the credit card industry. This initial study aimed to develop a questionnaire to evaluate the determinant variables of college student`s indebtedness in credit cards by adapting the foreign literature to the Brazilian credit card market reality. The questionnaire developed was distributed to students of six different colleges in the State of Rio de Janeiro, in Brazil, and resulted in a sample of thirty-two students. The collected data were tabulated and statistically treated by the multiple linear regression method. The results showed that only one of the independent variables listed was statistically significant and could be considered a predictor of the degree of financial leverage of the students. This variable was the preferred payment method. In short, students who expressed the preference for credit cards as a payment method had higher levels of indebtedness.

O avanço no uso do cartão de crédito e sua função como instrumento de crédito afetou o padrão de consumo das famílias. O presente trabalho pretende analisar como alterações no limite de crédito e na taxa de juros do cartão de crédito afetam o consumo. A partir dos resultados obtidos com esta primeira análise, podemos verificar a validade das predições das Teorias de Consumo, como a Teoria de Renda Permanente / The advance in the credit card usage and its function as a means of credit affects the consumption of the families. This work intend to analyze how modifications in the limit and interest rate of the credit card affects their consumption. From the results obtained with this first analysis , we may verify the validity of the predictions of the Consumption Theories, as the Permanent Income Theory

Esta dissertação de mestrado tem como objetivo, elaborar um modelo de segmentação baseando-se no comportamento comprovado de consumo de clientes, valendo-se das técnicas de Análise de Associação e Análise de Cesto de Compras, aplicadas aos dados das faturas de cartão de crédito dos clientes. A partir do modelo proposto, testou-se a previsibilidade das próximas transações dos clientes por meio de uma amostra de validação. A motivação desta pesquisa provém de três pilares: Contexto Científico, Tecnológico e Mercadológico. No Contexto Científico, apesar de já terem sido publicados artigos que associam a utilização do cartão de crédito a perfis de segmentação de clientes, não se encontram publicados estudos que relacionam dados da própria utilização do cartão como fonte de informação do cliente. A razão mais provável para isso é a dificuldade no levantamento dos dados fundamentais para este tipo de pesquisa. Com o apoio de uma grande instituição financeira, este trabalho está se tornando viável, sob o preceito da análise apenas sobre bases de clientes anônimos e que não transpareça informações estratégicas da instituição. No contexto tecnológico, com a tecnologia de informação em crescente desenvolvimento, as operações feitas com cartão de crédito tem o processamento on-line em tempo real, promovendo a troca de informação entre o estabelecimento comercial e a instituição emissora do cartão de crédito no momento em que a cobrança é lançada e aceita pelo consumidor final. Isso possibilita que ações promocionais sejam realizadas em toda a cadeia de valor de cartões de crédito, gerando mais valor para os clientes e empresas. No contexto mercadológico, o Brasil apresentou altas taxas de crescimento do mercado de cartões de crédito nas últimas décadas, substituindo os outros meios mais antigos de pagamento e de crediário. Especialmente no Brasil, observam-se compras pagas com o uso do cartão de crédito parceladas com e sem juros, o que contribui para a substituição de outras formas de crédito. Como benefício deste trabalho, concluiu-se que a partir do conhecimento do consumo do cliente, pode-se aplicar a análise de cesto de compras para prever as próximas transações dos clientes, a fim de segmentar os clientes para estimulá-los a aderir a uma determinada oferta. / The objective of this research is elaborating a Segmentation Model based on credit card client\'s behavior using Link Analysis and Market Basket Analysis techniques. The proposed model was used to testing the predictability of next client transactions through validation sample. Scientific, technological and marketing scenarios are the three motivational pillars of this research. On scientific context there were published studies that associate credit card use with segmentation profile of customer. However these studies do not establish relationship between data from own clients credit card utilization. One probably reason for this lack analysis into studies is the difficult collect of fundamental data. This research was feasible with the support of a great Brazilian financial group. On technological context is observed a wide information technology development. Credit cards transactions have on-line processing. This scenario allows exchange information between market and credit card institution at the moment of final client transaction approval. This technology permits that actions be realized along credit card value chain based on transactions that have been made. On marketing context, during the latest decades, Brazil has shown large growth rates on credit card beyond older ways of payment. In Brazil, is observed a wide utilization of credit cards in installment purchases contributing for the replacement of other ways of credits. This research conclude that from the knowledge of client consume profile, using the Market Basket Analysis technique, it is possible to get a forecast of purchase transactions with the objective to stimulate the consumer in accept particular offer.

A crescente utilização de cartões de crédito, nas últimas décadas do século XX, exigiu adequação do varejo a esse novo meio de pagamento, promovendo uma mudança no relacionamento com seus clientes. Este trabalho analisa o processo de decisão estratégica entre duas organizações, banco e varejista, na implantação de uma operação de cartão de crédito de marca própria, com base em um estudo de multicaso, com enfoque qualitativo, que permitiu aprofundamento e detalhamento do processo decisório em duas empresas de porte similar do setor supermercadista da região sudeste do país: o Sonda Supermercados, em São Paulo e a Rede Prezunic, no Rio de Janeiro. A obtenção dos dados foi realizada através de entrevistas semiestruturadas e da análise de documentos. Os resultados mostram que empresas, frente a um mesmo objetivo, tomam decisões de maneiras diferentes. Sendo assim, a decisão estratégica em implantar uma operação de cartão de crédito de marca própria deve ser tratada considerando-se o processo de decisão que melhor se adequa as características da organização e tomadores de decisão, para a garantia de um resultado satisfatório. Os resultados obtidos contribuem àquelas empresas que pretendem implantar uma operação de cartão de crédito de marca própria e auxiliar aos futuros interessados a conhecerem a importância e os impactos que essa decisão carrega. / The increase in use of credit cards, in recent decades of the twentieth century, demanded the adequacy of the retail sector in means of payment forms, promoting a change in the relationship with their customers. This study presents the strategic decision process between two organizations, in the banking and retail sectors, on the deployment of a private label credit card operation, based on two case studies on companies of similar size in the supermarket business in the southeast region of the country: Sonda, in Sao Paulo and Prezunic, in Rio de Janeiro. For obtaining the data, different techniques such as semi-structured interviews and the examination of documents were used. Results show that companies, facing the same goal, make decisions in different ways. Therefore, the strategic decision process to deploy a private label credit card operation should be dealt considered the characteristics of the organization and decision-makers, ensuring a satisfactory result. The purpose of this study is to guide future decision-making processes by presenting the importance and the impact that this decision carries.

Smartphones are often used in order to make purchases today and mobile payments are estimated to continue growing in numbers the following years. This makes mobile payment systems attractive to companies as a new business platform. It also increases the number of malicious users trying to exploit the systems for financial gain. This thesis is conducted for the company TaxiCaller which desires to integrate mobile payments into their existing service. It discusses the current security standards for mobile payments and evaluates existing mobile payment solutions. The focus of the evaluation is on the security of the solutions and vulnerabilities, as well as mitigations of identified vulnerabilities, are discussed. Based on the evaluation, a mobile payment solution is designed and implemented. This system fully integrates with TaxiCaller’s existing system. A threat analysis of the implemented mobile payment solution is performed to provide confidence in the security. This thesis also provides an insight into the ecosystem of mobile payments including the stakeholders, the regulations, the security standards and difficulties during implementations.

The thesis is concerning household indebtedness through credit cards, funding of these credits and how the consumer is affected. The focus is mainly on the current situation in the United States, nevertheless some observations from the former Korean credit card crisis are pointed out. The thesis describes the development of the credit card debt and identifies reasons and consequences of the expansion. The role of the state as setting conditions of the market and solving possible market failure is also mentioned.

Vulnerable consumers are likely to fall victim to negative marketplace outcomes due to the secondary effects of marketing practices. In particular, credit card targeting directed towards young people elicits ethical criticisms because of the perceived vulnerability of the target segment, the targeting efforts that are deemed more predatory than informative, and the stigmatising protectionist policies that limit the youths’ financial freedom. Vulnerable consumers are often overlooked in marketing considerations, leaving it to the public policy to intervene. This thesis aims to show that vulnerability is a marketing problem as much as it is a public policy issue, by highlighting the social effects of unethical marketing directed towards vulnerable consumers. The study depicts how young people, supposedly representing the most educated segment of the population, come to experience vulnerability due to credit card misuse and indebtedness. In addition, the study introduces a new concept and measure of susceptibility to credit card misuse and indebtedness (SCCMI) to investigate the extent to which youths are influenced by credit card temptations, which affect their likelihood to experience negative credit card outcomes. This study examines youth vulnerability and susceptibility to credit card misuse and indebtedness in a cross-country context, as the issue of vulnerability and power imbalance is arguably more pressing in the international market. The sampling involves young (18-25 years) credit card users in Singapore, Malaysia and the UK. These countries represent different degrees of credit card issuance and consumer protection regulations, which affect the youths’ credit card attitude and behaviour. The first study utilises qualitative methodology to examine youth vulnerability to credit card misuse. Baker et al.’s (2005) situational framework of actual consumer vulnerability helps to identify relevant themes pertained to the youths’ experience of credit card misuse and indebtedness. The qualitative study also serves as an exploratory phase to the subsequent quantitative study. The qualitative results enhance the conceptualisation and measurement scale development of SCCMI measure. The study then tested the validity, reliability and parsimony of the SCCMI measure and its proposed antecedent and consequent factors across the Malaysian, Singaporean and UK country samples. Vulnerability and susceptibility assessments in this study yield theoretical, methodological and practical implications. Vulnerability analysis draws upon the internal characteristics and external conditions that both facilitate and impede such vulnerability. Meanwhile, assessment of susceptibility provides an analytical tool to foresee and pre-empt future vulnerability. This study offers methodological contributions in its use of mixed methods, as a qualitative inquiry aids in understanding vulnerability while quantitative inquiry focuses on foreseeing potential vulnerability. A cross-country study analysis is valuable as it sheds light on the differences and similarities of consumer vulnerability and susceptibility across developing and developed countries. The study inform marketers that there are negative social consequences arising from unethical targeting practices, which leads to distrust and scepticism over credit card marketing directed towards youths. However, the youths’ experience of vulnerability also varies across individuals, which indicate that protectionist policies that shield the entire youth population from credit card exposure are not always necessary. Both credit card marketers and policy makers have the capacities to redress and pre-empt vulnerability without sacrificing the youths’ financial welfare and rights to harness the benefits that credit cards have to offer.

When entering the age of information technology, cash payments were slowly been replaced by other methods including credit cards and online payment applications. On one hand, it brings convenience, on the other hand, people potentially spend more money than before. Previous researchers suggest multiple ways to reduce the overspending behavior on credit card payments, but rarely have these methods been tested in an online payment solution context. This study adopted these methods and categorized them into two groups, visual cues, and financial management mechanics. These two groups of the solution then been translated and develop into three practical prototypes, two of each and one prototype having two groups combined. All prototypes are developed based on a commonly used online payment application named Swish in Sweden. These prototypes are later been tested by ten participants. The results show both groups of solutions have a positive influence to reduce users’ overspending behavior and having them combined provides further complement effects. The study provides empirical data and practical design implications in addressing the overspending issue of an online payment solution.

This study extends outshopping knowledge from North America to Europe. Outshoppers and non-outshoppers in a Finnish town are compared in terms of socioeconomic and demographic characteristics, importance of shopping area choice attributes, perceptions of the local trading area, and purchase localities of products. Implications are drawn and comparisons of results are made to general findings from North America.